How to Choose a Crypto Calculator

The crypto industry is a place where fast decisions make all the difference. That is why experienced crypto enthusiasts use various handy tools that make their life easier. A cryptocurrency calculator is one of them. 

There are different types of calculators. If you need to quickly figure out the exchange rate of a trading pair, you can turn to the Godex cryptocurrency calculator. For calculating the profitability of your mining hardware, you can use BTC.com or CryptoCompare. Other calculators include Koinly, ZenLedger, Token Tax, and BearTax. These are specialized calculators that help traders determine how much taxes they owe or determine profit and loss. 

This article will tell you everything you need to know about finding a crypto calculator. This includes an overview of the necessary features and the importance of getting a tax calculator.

How to Check the Quality of a Calculator

There is no sure way to check the quality of a calculator. But there are ways to reduce your chances of getting something that does not meet your standards.

• Cost: Is it free or is it paid? You get what you pay for. For taxes, you are much better off paying for features that help you accurately fill out a tax return.
• Do research: The seller’s site will be full of information claiming they have the best product in the world. They may be right, but it is smart to double-check. Read forums and talk to people you know who have used these products.
• Free versions: Use the free versions of a product if they are available. If you like what the free version offers, buy it.

With any type of calculator, your best bet is to trust well-known platforms with numerous reviews on Trustpilot.

Calculator Types

There are many crypto calculators available. They can be broken down into the categories below. Each can be useful for different people depending on their goals.

Crypto Profit & Loss Trading Calculator

Crypto profit and loss trading calculators are very straightforward. The calculator allows you to input the following variables:

• initial investment — how much money you initially spent on the coin or token;
• initial price — how much the coins cost before when you bought them;
• selling price — the value of the coin when you sold it;
• investment and exit fees — the amount the exchange charges for using their services.

After inputting these variables, the software will generate an answer. You can find free calculators online for small-time investors who trade as a hobby. But, people who are trading to make a living are better off buying paid software. Koinly is a reputable company with software that calculates gains and losses. It also helps with tax return preparation.

Mining Profitability Calculator

Mining calculators help miners determine which GPUs are best for their operations. They also determine which coins can be mined at the best prices. They allow the user to input variables for the GPUs to be used and the cost of electricity.

Kryptex has a free calculator on its website with these variables available. The only problem is that electricity rates change based on demand. As a result, profitability can also change.

Crypto Taxes Calculator

The most crucial calculator to have the tax kind. Alternatively, you can pay an accountant who knows how to do taxes. People who do not want to pay an accountant can choose to get tax preparation software. Besides the obvious feature this calculator should provide, also look at the following criteria:

• Country support: Software should support the agency’s reporting formats. For example, make sure it supports IRS Form 8949.
• Security: Make sure the software protects your personal and financial information.
• Supports CSV and API: These formats are used for tax forms. Make sure your tax preparation software is compatible with both.
• Necessity: There are many countries with no reporting requirements. Find out if your country has these requirements. If not, don’t buy it. 

There are several excellent programs available, but Token Tax is among the best. It integrates with major exchanges through an automatic API. It can also allow uploading trade history in CSV format.

Conclusion

Of all the calculators to get, tax calculators are the most important. Revenue collection agencies like the American IRS are very aggressive in collecting taxes. They can penalize you for filing an inaccurate return or not filing one at all. Calculators for determining the feasibility of mining and gains and losses are also essential. However, they will be of more use for people who do this for a living.